Check my w Direct materiale (4.0 Ibo. # $5.00 per tb.) Direct labor (1.9 hrs. + $12.00 per hr. 1 Overhead (1.9 hrs. $18.50 per hr.) Total standard cost 520.00 22.80 35.15 $77.95 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. overhead Budget (75% Capacity Variable overhead coats Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead conto $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 18,000 Supervision 279,250 Total fixed overhead costs 392,250 Total overhead conta $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $314,600 260,400 Direct materiale (60,500 Ibs. $5.20 per 1b.) Direct Labor (21,000 hrs. + $12.40 per hr.) Overhead costs Indirect materiale Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery $ 41,800 176, 800 17.250 34,500 24,000 95,850 Chec Fixed overhead costa Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs 24,000 71,000 18,000 279, 250 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 314,600 260,400 Direct materials (60,500 lbs. # $5.20 per lb.) Direct labor (21,000 hrs. $12.40 per hr.) Overhead costa Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41, 800 176,800 17,250 34,500 24,000 95,850 16,200 279, 250 685,650 $1,260,650 oblem 08-3A Part 4 ompute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance electing for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Depreciation-Building Depreciation Machinery Taxes and insurance Supervinion Total cost 24,000 95,850 16,200 279, 250 685.650 $1,260,60 Problem 08-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances, (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places.) Actual Cost $ D 5 0 $